holding costs


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Carrying Charge

1. The cost of storing a commodity over a period of time. It includes incidental costs, insurance coverage, and the physical cost of storage. It does not include depreciation, if any. The carrying charge is incorporated to the price of a commodity on the futures market.

2. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

3. Fees a firm charges for making a loan. The largest single carrying charge is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.

holding costs

See carrying charges.

References in periodicals archive ?
There are three types of costs in the model: (1) holding costs calculated as given unit costs times end inventory, (2) stockout costs calculated as given unit costs times stockout level occurred, and (3) ordering costs which are calculated if the end inventory is below the re-order point defined at the beginning of the simulation.
Due to the finiteness of production rate, holding cost is calculated by the area under the inventory curve.
Assumption 5: Known Ordering and Holding Costs (Solution: Flat Rates).
JAL only pays for parts as it needs them, thereby greatly reducing its inventory holding costs and improving its return on assets.
Our model allows for price elasticity, accounts for a various types of inventory holding costs, and deals with obsolescence costs and capital costs separately from the holding costs.
2 million in 2004 is due to increased holding costs at the Hycroft Mine of US$0.
In the meantime, this property will have very low holding costs and the property payments and holding costs will be creditable against the work commitment.
Third party certification will be used for more complicated approvals, resulting in faster design times and lower holding costs for developers and home builders.
The Company ceased exploration work on its uranium properties in 2009, funding largely only the holding costs associated with keeping them in good standing.
ANA will only pay for parts as it uses them, thereby significantly reducing its inventory holding costs and improving its return on assets.
For most properties, the current rate of sales isn't covering the holding costs of projects.
With interest rates, real estate taxes, insurance and other holding costs continuing to rise along with the housing market shifting into a slower gear, I expect we will see land speculators start to liquidate their holdings," said Dr.